Stock Markets Hit New Highs: What’s Driving the Rally?

On September 12, the Indian stock markets saw a significant rally, with both the BSE Sensex and NSE Nifty reaching new highs. The BSE Sensex surged by 1,439 points, closing at 82,962 points, while the NSE Nifty gained 470 points, ending at 25,388 points. During the day’s trading, the Sensex even touched an all-time high of 83,116 points, and Nifty reached 25,433 points.

Key Drivers of the Rally

  • US Inflation Falls: One of the major contributors to the market surge was the decline in US inflation, which fell to 2.5% in August, the lowest in the past three years. This eased concerns over global inflationary pressures and encouraged investor optimism.
  • Strong Performance in Metals and Mining Stocks: Stocks in the metals and mining sector, such as Hindalco, Nalco, NMDC, and Vedanta, performed particularly well, contributing to the overall market gains.

Market Overview

  • Stocks Performance: Out of the total stocks traded, 2,228 stocks rose, 1,564 stocks fell, and 103 stocks remained unchanged, reflecting a largely bullish sentiment across the markets.

Gold and Silver Price Movements

  • In Chennai, the price of 22-carat gold dropped by ₹10 to ₹6,6705 per gram. A sovereign gold (8 grams) was sold at ₹53,640.
  • The price of silver remained unchanged at ₹91 per gram, and bullion silver was sold at ₹91,500 per kilogram.

It’s important to note that a 3% GST is applicable on the purchase of gold and silver, and fees and charges for these metals may vary from one shop to another.

This rally highlights the ongoing strength in the Indian stock markets, boosted by favorable global economic conditions and strong sectoral performance. However, investors should continue to monitor international developments and market volatility.